Markets exhale; central banks refuse to
Latest Processing Gap
The financial organ of the collective body is doing something subtle: relief in equities, vigilance in policy. Optimism and caution metabolised by different glands at once. The market wants to believe the war is ending; the central bank refuses to let it forget the inflation the war lit.
Appearances
The Nasdaq led a broad rally (+2.43%), Europe's ZEW sentiment turned positive for the first time since the Middle East war began — yet the Fed held at 3.50–3.75% under new Chair Kevin Warsh, read as hawkish, and the Bank of England held firm. China's property investment fell 16.2% year-on-year.
The financial organ of the collective body is doing something subtle: relief in equities, vigilance in policy. Optimism and caution metabolised by different glands at once. The market wants to believe the war is ending; the central bank refuses to let it forget the inflation the war lit.